American Axle & Manufacturing Holdings Inc. (AAM) has reported its financial results for the second quarter 2021. 

“AAM delivered strong operating performance in the second quarter of 2021 despite industry production volatility stemming from continued supply chain challenges,” said AAM’s Chairman and CEO, David C. Dauch. “Our operating performance is allowing us to strengthen our balance sheet and invest in electrification technology development that is driving our future profitable growth.”  

AAM’s sales in the second quarter of 2021 were $1.28 billion as compared to $0.52 billion in the second quarter of 2020. AAM estimates sales for the second quarter of 2021 were unfavorably impacted by the semiconductor chip shortage by approximately $162 million. 

AAM’s net income in the second quarter of 2021 was $16 million, or $0.13 per share, as compared to a net loss of $(213.2) million, or $(1.88) per share in the second quarter of 2020.

In the second quarter of 2021, Adjusted EBITDA was $222.6 million, or 17.3% of sales, as compared to $(52.1) million, or (10.1)% of sales, in the second quarter of 2020. AAM estimates Adjusted EBITDA in the second quarter of 2021 was unfavorably impacted by lower sales as a result of the semiconductor shortage by approximately $46 million. 

AAM’s net cash provided by operating activities for the second quarter of 2021 was $167.1 million as compared to $(142.5) million for the second quarter of 2020.

AAM’s Adjusted free cash flow for the second quarter of 2021 was $136.1 million as compared to $(161.8) million for the second quarter of 2020. 

AAM’s Updated 2021 Financial Outlook 

AAM financial outlook is as follows:  

AAM is targeting sales in the range of $5.3 – $5.5 billion

AAM is targeting Adjusted EBITDA in the range of $875 – $925 million($850 – $925 million prior) 

AAM is targeting Adjusted free cash flow in the range of $350 – $425 million ($300 – $400 million prior); this target assumes capital spending of 4.0% – 4.5% of sales